Comment Text:
i0-001
COMMENT
CL-01521
From."
Sent."
To,"
Subject,"
M Viswanath
Thursday, January 21, 2010 3"41 AM
secretary
RIN 3038-AC61
The proposed leverage changes will make it impossible for small traders to participate in the forex
market thereby making the forex market a monopoly for those with huge capital and/or monopoly for
financial houses and banks.
The leverage should continue to remain at 100:1 to allow a level playing field for people with limited
capital who have the ability to do responsible trading.
There could be other legislations like making it mandatory for every forex broker in US to be regulated
which would be of greater help to reduce the current issues encountered in the forex market.
M.Viswanath
Date: Wed, 20 Jan 2010 21:07:20 -0500
From: [email protected]
To: viswanath, m@ hotmail.com
Subject: CFTC's Proposal of Leverage Changes: How You Can Help
Dear Valued Customer,
As many of you are aware, the U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010
that it is seeking public comment on proposed regulations concerning retail Forex trading.
As part of the proposed regulations, it is stated: "leverage in retail forex customer accounts would be subject to a 10-to-1
limitation," which means 10:1 leverage would be the maximum amount allowed for all Forex traders in the U.S.
An example of how the proposed regulatory restrictions would affect a major currency pair appears below:
Maximum Leverage under Current Regulations
USD/CHF
100:1 leverage (one percent)
1 lot (100,000)
Margin requirement: $1,000
Maximum Leverage under Proposed CFTC Changes
USD/CHF
10:1 leverage (10 percent)
1 lot (100,000)
Margin requirement: $10,000
We stand behind the belief that you should be given the freedom and right to choose the amount of leverage that is
appropriate for your individual desired risk, and that this basic principle of 'choice' is in jeopardy by the proposed CFTC
regulations.
If you feel strongly about the proposal, we encourage you to help determine the outcome of these proposed regulations.
You can help make an impact by sending comments directly to the CFTC at: [email protected].
Please include 'Regulation of Retail Forex' in the subject line of your message and the identification number RIN 3038-
AC61 in the body of the message.
You can also submit your comments by any of the following methods (include above ID number):
¯
Fax: (202) 418-5521i0-001
COMMENT
CL-01521
¯ Mail: David Stawick, Secretary Commodity
Futures Trading Commision 1155 21st Street, N.W.,
Washington, DC 20581
¯
Courier: Use the same as mail above.
In the upcoming days, Interbank FX and the rest of the U.S. Forex Dealer Coalition will be releasing a more formal
opinion about the proposed changes. Please feel free to read further details about the regulation on the CFTC website by
clicking here.
In the interim, we encourage you to voice your opinions to the CFTC and your local U.S. representative.
As always, we want the best for our traders. We hope you'll join forces with us to prohibit the proposed leverage
requirements.
The Interbank FX Team
International
US and Canada 866.468.3739 Australia 1.800.884.912
Indonesia
001.803.017.9112 Malaysia 1.800.813.776
New Zealand 0800.446647 Singapore 800.101.2097 United Kingdom 0.808.120.1966 International +1.801.930.6800
Interbank FX
TM
LLC I IBFXTM I IBFXUTM I Registered FCM, Member NFA
Interbank FX I 3165 Millrock Drive STE 200 I Salt Lake City, UT 84121 I Tel: 1.866.468.3739
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Trading in the off exchange retail foreign currency market is one of the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The leveraged nature of FX trading means that any market movement will have an
equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain
a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call
within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.
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